Future of Fred Winter Centre in Stratford ‘at risk’ as Spring Housing Association struggle to pay bills
SPIRALLING costs are putting the future of the Fred Winter Centre ‘at risk’.
Spring Housing Association, which runs the pioneering homelessness prevention hub in Guild Street, says energy price hikes have seen the price of gas jump by 250 percent, while electricity has rocketed by 160 percent.
The stark financial challenge, laid out in a report to Stratford District Council (SDC) cabinet, reveal the centre, which includes 15 self-contained accommodation units plus communal areas and facilities, costs £640,000 a year to run.
Spring’s annual income is £278,482, leaving a shortfall of £361,435 a year the housing association pays to keep the homelessness hub running.
Papers prepared ahead of discussions at a SDC cabinet meeting on Monday 6th October, describe the situation as ‘not sustainable’.
Conversations between Spring and SDC about the shortfall have been going on since 2023.
But they have now ‘reached critical mass,’ with Spring saying it is unable to continue the ongoing subsidy of the scheme.
Apart from the rocketing costs of energy, Spring also points to rampant inflation, and a higher-than-envisaged need to provide 24-hour services to clients.
Spring has already tried to cut outgoings by closing the community café and is looking at installing solar panels to slash energy costs.
Meanwhile, the Birmingham-based housing association is asking Cabinet to consider a proposal to allow a change to the operating model of Fred Winter Centre, which would take effect from next April.
This would see a change in the occupation agreement, from assured shorthold tenancies (ASB), and a transfer from affordable rents to social rents to boost the amount of income generated, and lower the amount of subsidy paid by Spring.
The report to cabinet recommends this option as the most ‘pragmatic’.
If the revised proposal is accepted by cabinet, the £60,000 a year contribution made by SDC to Fred Winter Centre will continue unchanged.
Spring Housing Association group chief executive Janette Beckett highlighted the national recognition the Fred Winter Centre has received for its achievements in supporting homeless and vulnerable people to move on and rebuild their lives.
She emphasised that the report to Cabinet and proposed changes are about safeguarding the future of the centre, rather than winding it down.
Ms Beckett told the Herald: “Spring Housing has always operated on a clear principle we invest to prevent homelessness.
“That’s exactly why, together with partners, we created the Fred Winter Centre: a bold, long-term homelessness prevention hub for Stratford-upon-Avon, with a shared ambition to make homelessness rare, brief and non-recurring.
“From the outset, we knew Spring would need to subsidise the service in its early years, and we did so - even through COVID, rising inflation and escalating support needs.
“We did this because we believed in the model and wanted to protect a vital local service.
“For three years, we absorbed those pressures to prove the concept worked.
“The evidence now speaks for itself: the Centre has prevented homelessness, supported positive move-ons, rebuilt lives and become a recognised national example of good practice.
“That said, no organisation can continue to underwrite such a service indefinitely.
“The report going to Cabinet is about securing the long-term future of an innovative project, not winding it down, but strengthening it.
“The revised model will stabilise the service both financially and operationally, ensuring sustainability and longevity for years to come.
“It’s also important to clarify that the recommended approach places no additional burden on Stratford District Council.
“Exempt supported accommodation is funded through central government via the DWP, a standard model already in use across the country.
“Aligning the FWC in this way will make the centre more resilient.”
Asked about the higher-than-anticipated level of need for care for clients of FWC, Ms Beckett explained the centre opened during the Covid pandemic when most traditional housing options were closed or severely restricted.
She added: “Rather than turning people away, we stepped up because that’s what was needed. “Homelessness is such a traumatic experience.
“We really are part of the solution to reduce the potential and impact of homelessness.
“The Fred Winter Centre is already a local success story and one of the first models of its kind in the UK, attracting significant national interest.
“This next phase, and most important phase, is about protecting that legacy and ensuring the Centre remains the foundation of homelessness prevention in the town.”
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